The OCC last week issued a bulletin highlighting the risk management principles banks should adhere to when undertaking new activities, including offering new, modified or expanded products and services. These principles include adequate due diligence and approvals before introducing a new activity, policies and procedures to properly measure, monitor and mitigate risk, effective change management and ongoing monitoring.
The bulletin also noted that new activities should be developed and implemented consistently with sound risk management practices, align with the bank’s overall strategic plan, encourage fair access to financial services and fair treatment of consumers, and be in compliance with all applicable laws and regulations.
